J.P. Morgan Takes a Retail Hit

A huge rebound in trading and investment banking propelled J.P. Morgan Chase & Co. to quarterly profit of $3.28 billion, but unrelenting losses on consumer loans cast gloom across U.S. banks heading into next week's flurry of earnings reports.

The largest U.S. bank in stock-market value also said it is nipping bonuses for investment bankers by an unspecified amount to help offset the cost of the new U.K. bonus tax. The move spreads financial pain from the one-time tax of 50% on certain bonuses paid in the U.K. throughout...